Question

Introduction of business finance

Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Edmund PVT Ltd. One of the firm’s clients is Michelle Torre, a professional swimmer who has just come to the Australia from Canada. Michelle is a highly ranked swimmer who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amount of money. Michelle is very bright, and, therefore, she would like to understand in general terms what will happen to her money. Your manager has developed the following set of questions that you might ask and answer to explain the Australian business finance set up to Michelle.

Required

1. Explain three main areas of concern in business finance. ​​​

2. The financial manager has one particular goal in mind. ​​​​

a) What is this goal and why adopt it as the focal point for financial management?

b) What are some of the difficulties in achieving this goal?

3. What is time value of money? Explain.​​​​​​

4. How can firms improve their competitive position and so make projects potentially more attractive?​​​​​​​​​

Answer 1

1. Business finance is one of the important concept in fiinancial environment. Itis one of the responsible areas of managing the finances of the organisation. As the money is very importamt it needs to be managed well. The management of assets prchase is alos concerned in this area. We know every buisnesses needs some sort of assets to start the business. It manages and arranges the sources from which the assets can be purchased. it also concerned with the growth phase of the organisatio. Every firm likes to grow and thay wish it to be continuous. The managers should apply thier funds in such an area where growth can be ensured.